October 29, 2013 · 1:00 PM
This past summer, the N.C. General Assembly passed and Governor McCrory signed into law groundbreaking legislation authorizing the use of design-build, design-build bridging and public-private partnerships in the delivery and financing of public construction projects in the state. The legislation is sure to alter North Carolina’s public procurement landscape drastically and influence the complexion of the state’s construction industry, particularly at the design and prime contractor levels.
Last Wednesday, October 23, I attended an excellent panel discussion covering key aspects of House Bill 857 (“HB 857”) sponsored by Carolinas AGC Foundation, AIA North Carolina (@AIA_NC), the Professional Engineers of NC (@ProfEngNC), United Minority Contractors of North Carolina and the American Council of Engineering Companies of North Carolina. Based on that discussion and my own review and analysis of the legislation, here are my top ten observations:
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Filed under Feature story, Local law, policy & news, Payment Bonds, Project Delivery Systems, Public Bidding, State law, policy & news
Tagged as alternative project delivery, alternative project financing, construction surety, contract surety bonds, contractor prequalification, contractor prequalification nc, contractor prequalification north carolina, design-bid-build, design-build, design-build bridging, hard bid, Mini-Brooks Act, nc public construction, nc public works, payment bonds, performance bonds, project delivery systems, public-private partnerships, Quality-Based Selection, surety bonds
January 28, 2013 · 9:40 AM
A Grim Tale
Image by Larisa Koshkina / PublicDomainPictures.net
Once upon a time, Best General Contracting, Inc. hired Able Electric Services Co. to perform the $900,000 electrical scope of work on a library project for a local college. Having not worked with Able before, and in light of the value of the electrical scope, Best required Able to obtain subcontractor performance & payment bonds for Best’s benefit, agreeing, of course, to reimburse Able for the $13,500 bond premium. As fate would have it, the library project proved one too many for the not-so-able Able, who ran into cash flow problems, sought bankruptcy protection and abandoned the project. Best immediately fired off a notice of default letter to Superior Surety and hoped that the claims handling process would match previous, positive experiences with subcontractor sureties and culminate in a quick, fairy-tale resolution to this project setback.
To Best’s surprise, it would not. Continue reading →
Filed under Claims Handling, Performance Bonds, Surety Law
Tagged as bond obligee, construction bonding, construction bonding nc, construction bonds NC, construction contract default, construction contract termination, construction default, construction surety, contract bond surety, contract performance risk management, contract surety bond, handling surety claims, irrevocable letter of credit, managing surety claims, nc surety, nc surety law, nc surety lawyer, north carolina surety, North Carolina surety law, North Carolina surety lawyer, subcontractor default insurance, surety, surety claims process, surety obligee, surety principal